Chamber message to Local Authority
27th August 2014
Limerick’s Local Authority Councillors and Executive need to clearly identify which services will be cut or how the shortfall will be funded if property tax is reduced. This is the message from Limerick Chamber in their recent observation to the public consultation on the local property tax adjustment factor.
Speaking about their observation Chamber Economist Dr. Órlaith Borthwick said “As a business representative body we are acutely aware of the current economic climate and the volatility in which businesses, and indeed the households which depend on them as their source of income, exist.
“Local Authorities across the country have been given the ability to adjust the rate of Local Property Tax by +/-15%. We respect the discretion which has been given at a local level. However, we need to stress that a reduction will reduce council revenues; before any adjustment is made the extent of this impact must be realised.
“Businesses cannot fund any shortfall through an increase in commercial rates. Limerick’s Local Authority will invoice businesses in the City and County for €54 million this year; equating to 31% of council’s entire revenue. Businesses more than pay their fair share.
“Any increase in council charges to businesses will damage efforts to present Limerick as an attractive competitive location in which to invest; and will ultimately lead to business closures and job losses” concluded Dr. Borthwick.
Ends
For more information contact Órlaith Borthwick
m|086-4136161
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